Correlation Between Guidewire Software, and JB Hunt
Can any of the company-specific risk be diversified away by investing in both Guidewire Software, and JB Hunt at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Guidewire Software, and JB Hunt into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guidewire Software, and JB Hunt Transport, you can compare the effects of market volatilities on Guidewire Software, and JB Hunt and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Guidewire Software, with a short position of JB Hunt. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guidewire Software, and JB Hunt.
Diversification Opportunities for Guidewire Software, and JB Hunt
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guidewire and J1BH34 is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Guidewire Software, and JB Hunt Transport in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JB Hunt Transport and Guidewire Software, is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Guidewire Software, are associated (or correlated) with JB Hunt. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JB Hunt Transport has no effect on the direction of Guidewire Software, i.e., Guidewire Software, and JB Hunt go up and down completely randomly.
Pair Corralation between Guidewire Software, and JB Hunt
Assuming the 90 days trading horizon Guidewire Software, is expected to generate 95.01 times more return on investment than JB Hunt. However, Guidewire Software, is 95.01 times more volatile than JB Hunt Transport. It trades about 0.04 of its potential returns per unit of risk. JB Hunt Transport is currently generating about 0.13 per unit of risk. If you would invest 8,424 in Guidewire Software, on October 6, 2024 and sell it today you would earn a total of 264.00 from holding Guidewire Software, or generate 3.13% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 98.31% |
Values | Daily Returns |
Guidewire Software, vs. JB Hunt Transport
Performance |
Timeline |
Guidewire Software, |
JB Hunt Transport |
Guidewire Software, and JB Hunt Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Guidewire Software, and JB Hunt
The main advantage of trading using opposite Guidewire Software, and JB Hunt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guidewire Software, position performs unexpectedly, JB Hunt can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in JB Hunt will offset losses from the drop in JB Hunt's long position.Guidewire Software, vs. Taiwan Semiconductor Manufacturing | Guidewire Software, vs. Apple Inc | Guidewire Software, vs. Alibaba Group Holding | Guidewire Software, vs. Microsoft |
JB Hunt vs. Taiwan Semiconductor Manufacturing | JB Hunt vs. Apple Inc | JB Hunt vs. Alibaba Group Holding | JB Hunt vs. Microsoft |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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